Future Ready: Sustainable Cities Nick Merritt

Transcription

1 1 Future Ready: Sustainable Cities Nick Merritt

2 Time Topic Presenter 4 pm Welcome Tasdikiah Siregar, TNB & Partners 4.05 pm Introduction & Sustainable Cities video 4.25 pm Bandung City investment overview Nick Merritt, Global Head, Infrastructure, Mining & Commodities, Norton Rose Fulbright Ridwansyah Yusuf Achmad, International Relations Officer, Bandung City Government 4.40 pm Key challenges in Indonesia s infrastructure market Nadia Soraya, Partner, TNB & Partners 4.55 pm PPP risk allocation Mark Moseley, Senior Director, Legal Frameworks and Procurement Policies, Global Infrastructure Hub 5.15 pm Panel discussion followed by Q&A Nick Merritt, Norton Rose Fulbright (moderator) 6.05 pm Closing remarks Shamim Razavi, TNB & Partners pm Refreshments and drinks Program

3 Indonesia s Infrastructure Market: Key Challenges Nadia Soraya Partner, TNB & Partners 7 March 2017

4 Increased budget: RPJM ( ) IDR 6,780 trillion (USD 507 billion) State Budget (2016) IDR trillion (USD 23.7 billion) State Budget (2017) IDR trillion (USD 28.9 billion) 4 Indonesia s Infrastructure Market Key Challenges

5 Strategic and Priority Projects 5 Indonesia s Infrastructure Market Key Challenges

6 Economic Stimulus Packages 14 Stimulus Packages Deregulation, incentives, policy harmonisation and relaxing foreign investment restrictions 6 Indonesia s Infrastructure Market Key Challenges

7 Key Challenges Financing Regulatory issues Bankability Land Acquisition Project Procurement 7 Indonesia s Infrastructure Market Key Challenges

8 Financing issues RPJM % 50% PPP scheme 19% PINA State Budget SOE's Private Sector 8 Indonesia s Infrastructure Market Key Challenges

9 Bankability issues Unbankable structure and documentation Imbalanced risk allocation 9 Indonesia s Infrastructure Market Key Challenges

10 Procurement process Traditional Procurement PPP Schemes Delays Process delay Implementation delay Transparency 10 Indonesia s Infrastructure Market Key Challenges

11 Regulations????? 11 Indonesia s Infrastructure Market Key Challenges

12 Land acquisition 12 Indonesia s Infrastructure Market Key Challenges

13 Land acquisition - challenges 13 Indonesia s Infrastructure Market Key Challenges

14 Considerations for Stakeholders Awareness and improvement of procurement mechanism and procedures Regulatory improvements to create certainty Efficient contract arrangements and finalisation Consistent implementation of land acquisition rules 14 Indonesia s Infrastructure Market Key Challenges

15 1 Panel Discussion

16 Panellists Donny Hamdani, Deputy Director of Finance and Risk Management, PT PII Harold JD Tjiptadjaja, Chief Investment Officer Infrastructure, PT Indonesia Infrastructure Finance Mark Moseley, Senior Director, Global Infrastructure Hub Rainier Haryanto, Program Director of KPPIP (Committee for Acceleration of Priority Infrastructure Delivery) Sri Bagus Guritno, Infrastructure PPP Director, Bappenas Mia Amalia, Urban Affairs Subdirectorate, Bappenas Benny Bernarto, Partner, TNB & Partners 16

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18 Disclaimer TNB & Partners is an Indonesian law firm which operates in association with Norton Rose Fulbright Australia. Norton Rose Fulbright Australia is part of Norton Rose Fulbright, a global law firm offering a full business law service to many of the world's preeminent financial institutions and corporations from offices in Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia. References to Norton Rose Fulbright are to one or more of the Norton Rose Fulbright members or to one of their respective affiliates (together Norton Rose Fulbright entity/entities ). No individual who is a member, partner, shareholder, director, employee or consultant of, in or to TNB & Partners or any Norton Rose Fulbright entity (whether or not such individual is described as a partner ) accepts or assumes responsibility, or has any liability, to any person in respect of this presentation. Any reference to a partner or director is to a member, employee or consultant with equivalent standing and qualifications of TNB & Partners or the relevant Norton Rose Fulbright entity. The purpose of this presentation is to provide information as to developments in the law. It does not contain a full analysis of the law nor does it constitute an opinion of TNB & Partners or any Norton Rose Fulbright entity on the points of law discussed. You must take specific legal advice on any particular matter which concerns you. If you require any advice or further information, please speak to your usual contact at TNB & Partners or Norton Rose Fulbright.